Will there be another mobile operator in Lithuania? The business is alarmed by the ambitions of the officials



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At the government meeting on Wednesday, it is expected to adopt a protocol decision that instructs the Ministries of Transport and Interior (MoI) to implement the plan of measures for the establishment of the State Critical Communication Network (VKRT) within the established deadlines. in the same.

On October 20, the Ministry of the Interior would also be in charge of requesting the Communications Regulatory Authority to reserve some frequencies for VKRT needs.

According to the information provided to the meeting, public authorities currently operate more than 15 different and interconnected mobile and radio networks. Communication costs per device range from € 2,950 to € 41 per year.

This is said to result in high network operating costs, inefficient use of state assets and monetary funds.

“More than 33 million euros. Also built in the state GSM-R (Lithuanian railways, investment: about 50 million euros), ambulances and other official mobile and radio communication networks in the state, but due to different technologies cannot be connected, they only provide voice service and are not responding these days ”, reads the presentation of the new network.

It is estimated that the investment for its installation would reach 43 million. euros. The new network would provide 4G LTE connectivity (which is now provided by mobile operators), as well as opportunities for the development of next-generation 5G connectivity.

The new network would provide transmission services for voice, data, video, location, controlled drones.

The new state connection would be used by 11.7 thousand. devices using existing state networks and 11.3 thousand could still be connected. facilities of other institutions.

Commercial mobile operators Bitė, Telia, Tele2 are alarmed by such an idea.

Together with the Lithuanian Business Confederation, the Investor Forum and the Infobalt Association, they called on the Government (as well as the Presidency and the Ministry of the Interior) to disagree with the new network model, start broader discussions, examine all models and make rational and balanced decisions.

Operators and business associations say they are categorically opposed to the creation of a state operator.

“We, the undersigned, are concerned not only about the proposed VKRT model, but also about the impact of this model on the Lithuanian economy, the development of the electronic communications infrastructure and the faster development of 5G communication technology in the country and the general investment environment.

Considering the planned number of devices that will operate on VKRT and the planned number of radio frequencies to be reserved, we have reasonable suspicions that the state seeks to create a fourth – the state mobile operator – Lithuanian Radio and Television Center ”, says the address.

Among other things, mobile operators have asked the government for a planned change in the governance model of the Communications Regulatory Authority, envisaging it being headed by a five-person board instead of the service director.

“We believe that proposing reforms to the Office’s governance requires a discussion with stakeholders that introduces specific regulatory issues in the telecommunications sector and identifies possible solutions to such challenges,” said a statement signed by the heads of the operators.

He doubts whether the new governance model will work or be effective. It is also observed that the new management model would cost an additional 370 thousand. euros.

Will it really cost as much as advertised?

The project prepared by the Ministry of the Interior establishes that the state investments in the new critical communications network would amount to about 43 million LTL. euros.

However, Mindaugas Ubartas, director of the Infobalt Information Technology and Communications Association, says that research conducted in the European Union (EU) shows that networks developed by the state separately from private market players cost around the 40 percent. plus.

According to him, the installation of a base station costs from 50 to 60 thousand. euros. According to data from the Communications Regulatory Authority (RRT) on June 1, Telia Lietuva has 1467 stations of this type, Tele2 – 1339, Bitė Lietuva – 1190 stations of this type.

Therefore, to create a competitive network, it would take much more investment, Infobalt cautions.

“It just came to our knowledge then. Locations where the base stations are located. It is up to the state to make such investments that have already been made,” Ubart told BNS.

“This movement from under the table has nothing to do with security, criticism or solid logic. In my opinion, this is an unnecessary waste of time and resources, “he added.



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